I was out at Halogen’s TalentSpace Live 2017 event this week speaking to great HR pros and leaders. Halogen is the king of performance management and they just announced their merger with the king of Learning, Saba. Together, they have a pretty great 1-2 punch for organizations to check out.

TalentSpace Live brought in Patty McCord one of the main builders of the famous Netflix Culture deck (if you haven’t read this, you need to take a few minutes and do it!):

Patty was an awesome speaker for an HR audience. Real, fresh, in your face with great energy. She’s the HR leader everyone wishes their organization had.

Patty made a statement that stuck with me:

“The metrics to running HR are already in the business, you don’t need to create new ones!” 

What she was talking about was HR shouldn’t be focused on HR metrics, HR should be focused on business metrics (Profit, Revenue, Net Income). She went on to say “Retention” isn’t a business metric. Senior leaders don’t care about retention.

They care about Profit, Revenue, Net Income, Margin, etc. As HR leaders we need to show them the impact to business metrics when we suck at HR. We need to talk about what we are doing in HR using business language, not HR language and words.

“We believe we can increase margins if we put this program in place to control the amount of money we are having to spend to replace workers when they leave us.” Not, “Our retention is worse than the industry average and we have a program to lower our turnover.”

Senior leaders hear two very different things when they hear those statements, even though they basically are pointing out the same problem and solution.

We don’t need more HR metrics. We need more HR leaders focusing on the metrics of our businesses that are already in place and show us whether we are successful or not. Patty also shared she thought every single employee should have P&L training.

If your employees know how the organization makes and loses money, there will be no question on what direction they need to take in their daily job duties to have a positive impact on that outcome. Too often we tell them what to do assuming it’s too complicated for them to understand.

If you teach your employees how you make money it’s always amazing to watch behaviors change in how they do every job in your company. I find the vast majority actually want the organization to be successful but didn’t know how to help until someone connected all those dots to their job.

I really enjoyed Patty! She spoke my language! If you get a chance check her out!